Small business owners have been feeling the pinch in 2025, especially from the drop in tourism that filters down off the Strip, but they can effectively navigate the economic shifts and position themselves for growth in 2026, according to Henderson Chamber of Commerce CEO and President Scott Muelrath.
Muelrath in a year-end interview with the Business Press talked about how small businesses in Southern Nevada have been facing pressures over the economy and prices.
The year ends as the National Federal of Small Businesses released a report that shows those owners are gaining in optimism of what’s ahead.
Of the 10 Optimism Index components, six increased, three decreased and one was unchanged. An increase in those expecting real sales to be higher contributed most to the rise in the Optimism Index. The Uncertainty Index rose three points from October as owners reported uncertainty about capital expenditure plans over the next three to six months.
“From a small-business standpoint when I look over the past year, I have to admit a fair amount of trepidation for the local economy and small businesses,” Muelrath said. “In certain places that’s borne out. There’s some tough spots for mom-and-pops, especially restaurants and retailers. But overall, I have felt the Las Vegas small business economy has stayed quite strong and a little surprising for me given the various headwinds.”
Headwinds include tariffs that have impacted some significantly while others not as much, Muelrath said. The drop in tourism also has an impact on small businesses outside the Strip.
“You can’t go months after months of tourism being down and not have it start to show up in the local economy,” Muelrath said. “I have been surprised it hasn’t shown up more significantly and sooner. I would be concerned if that tourism drop continued into 2026 than small businesses will start feeling that more and more in the Vegas Valley.”
Muelrath said tariffs have started to even out. Henderson manufacturers are telling him more people are buying American products to their company’s benefit. Those companies that have been able to expand product lines to step into that space have found success, he added.
“The flip side is there are some manufacturers that have been suffering mightily on the cost side and are at a serious competitive disadvantage because of the myriad of tariff impacts across the products they have to acquire,” Muelrath said.
The Henderson Chamber tries to build a business book in challenged times, Muelrath said. It’s a place to turn to for help, he added.
“You lean in on the people you know and lean in on the relationships you know and you lean in on doing business with those who you trust,” Muelrath said. “We assemble those networks. What we have been doing as an organization is building a network of people to do business with and people that you trust is at the core of retail and services.”
• Muelrath offered four actionable items for small businesses in 2026, many that crossover with each other, starting with leaning on their track record. Long-standing customer relationships are a powerful asset that can act as a shield against pricing fluctuations and economic shifts, he noted.
“Doubling down on those relationships and track record and things you can control such as customer service and history with clientele is important,” Muelrath said. “If someone has done business with you for a while they will be more forgiving because they trust your product and pricing. They understand things may go up a little bit, but those longer-term relationships will help get everybody through.”
• Second is delivering a product or experience that matters. Consistency and quality matter more than ever, and it’s important businesses refocus on delivering products and experiences that customers truly value, he said.
“Customer service is one of the things as is product relevancy,” Muelrath said. “The pricing is tough. Some things you can’t control pricing like you used to, and your margins are more narrow. That is where the trust factor comes in.”
• Third is focus on what they can control. That means the fundamentals every business can control, such as service, follow-through, communication and integrity, and how these basics continue to reinforce customer trust and perceived value, he said.
“You can provide that customer service, and that will be more important than ever,” Muelrath said. “Consumers want to spend where they trust the experience.”
• Fourth is building and solidifying a reputation. Reliable service plays a key role in maintaining brand loyalty and trust, particularly as consumers become more selective, he said.
“It’s harder to find a new customer,” Muelrath said. “You got to keep the client base that you have.”
Despite the challenging times, Muelrath provides some optimism for small business owners. He said what gives him hope is what he knows and has seen.
“We’ve been very resilient through this year,” Muelrath said. “There are businesses that are suffering significantly like the restaurant operators and smaller retailers that don’t have a credit name behind them and bulk buying as a chain. They’ve really been hurting. You can only pay so much to go to your favorite restaurant. They can’t raise their prices that much. Some people have given up. It’s not all roses for sure, but I say overall it’s been better than I thought it would be. Hopefully 2026 will be more stable and consistent because that’s what we all would like to see.”
